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Commercial letter of credit to enable firm to import

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Reference no: EM132699168

Question

Assume, as the loan officer of a commercial bank, that one of your customers has asked for a commercial letter of credit to enable his firm to import a supply of well-known French wines. This customer has a long record of commercial success yet has large outstanding debts to other creditors. In what way might you accommodate the customer and at the same time protect your bank?

Reference no: EM132699168

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